Important points
- Burwick Law is suing Pump.fun on behalf of investors for losses in meme coin trading.
- Pump.fun has had a huge impact on Solana's DeFi space, accounting for over 70% of new tokens on some days.
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Burwick Law has launched legal proceedings against Pump.fun on behalf of investors who suffered losses due to the platform's meme coin trading activities.
**Legal Action Warning: PUMPDOTFUN**
Berwick Law is suing on behalf of investors in pumpdotfun memecoins. If you lose money on Pumpdotfun memecoins, you may be entitled to compensation.
Please see below for details.
— Burwick Law (@BurwickLaw) January 15, 2025
The company has highlighted concerns about the anonymity of the platform and the display of illegal content.
The move comes after Pump.fun generated $2.2 billion in weekly trading volume, according to on-chain analyst Adam Tehc's Dune dashboard.
A recent report based on Dune Analytics data tracking Pump.fun found that out of 14 million wallet addresses on the platform, only 57,144 users realized profits of more than $10,000, and no wallets made more than $1 million. There were only 298 wallets (about 0.00217%).
However, on-chain analyst Adam Teck argues that this data does not accurately reflect the number of crypto traders who are truly making profits on the platform.
“If you can trade $10,000 in Pump.fun tokens, you are in the top 0.412% of wallets,” on-chain analyst Adam Teck said in a Jan. 10 X post. Realized profits are calculated only after the trader sells the asset.
Aron, the platform's anonymous co-founder, disputes the accuracy of the Dune data, saying it excludes purchases made after the token was bound to Raydium, a decentralized exchange for Pump.fun tokens. He said there was.
He noted that 30% of Pump.fun wallets had only one transaction, which was due to bot or AI activity.
According to Lookonchain, the platform has acquired 2,016,391 SOL tokens, amounting to approximately $398 million in revenue through January 2, 2025.
The lawsuit coincides with Solana's DeFi activity approaching an all-time high of $9.5 billion on TVL, with the current figure at $9 billion.
Pump.fun dominates token creation on Solana, accounting for over 70% of new tokens on any given day.
Following the announcement of the legal proceedings, a meme coin based on the Berwick Act emerged, reaching a market capitalization of $700,000.
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